Changes in Mortgage Underwriting: More Scrutiny

There are frequent changes being made to the mortgage underwriting process. Lenders are now looking at how recently an owner/seller purchased a property when reviewing a purchaser’s application for a mortgage to buy it. There are “anti-flipping” requirements which mandate that an owner own the property for a minimum of 90-days before a lender will consider granting a mortgage to a buyer.

All loans are now a full-documentation process whereby the lenders are reviewing all of the financial details on a borrower; current income and job verification’s, bank statements showing adequate funds and reserves, credit reports and credit scores. Appraisers are now noting the direction of the marketplace in terms of stable, increasing or decreasing property values.

Check in with your mortgage lender to make sure that you are pre-approved for a mortgage BEFORE you go house hunting. This will save you time and frustration later; it will also give your offer strength in your negotiations with a home seller.

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